Oyegoke, A S; Powell, R; Ajayi, S; Godawatte, G A G R and Akenroye, T (2022) Factors affecting the selection of effective cost control techniques in the UK construction industry. Journal of Financial Management of Property and Construction, 27(2), pp. 141-160. ISSN 1366-4387
Abstract
Purpose: This paper aims to identify and analyse the factors affecting the selection of effective cost control techniques in the UK construction industry and assess their importance. The study examines these key areas; the factors that have significant impacts on cost overruns, the most effective cost control techniques and the factors for selecting cost control techniques for a project. Design/methodology/approach: The study relies on a mixed-method research approach; a qualitative exploration of the most effective cost control techniques and the factors affecting the selection of cost control techniques, followed by a questionnaire survey and follow-up interviews. Relative importance index (RII) is used for ranking the factors. Findings: The budgeting technique is ranked first with-0.821RII, followed by cost forecasting-0.800RII and cashflow monitoring-00.733RII, as the most effective cost control techniques. On factors that influenced the choice of the techniques used, cost information/cost-related factors are ranked first with-0.611RII, followed by the size of the company-0.509RII and the effectiveness of the technique-0.572RII. Research limitations/implications: Although the scope of the study was limited to the UK construction industry, the results could be interpreted for critical learning in other developed/developing countries. Originality/value: Identifying and ranking the factors affecting the selection of effective cost control techniques in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective model which can be used for critical learning on mitigating cost overruns and the effective use of cost control techniques in the construction industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction projects; cost control techniques; cost overruns |
| Index terms: | construction industry, effectiveness, monitoring, cost overrun, cost forecasting, cost information, questionnaire, exploration, methodology, cost control, construction project, budgeting, survey, relative importance index, interview, developing country |
| Subjects: | financial and cost management, environmental resource management, control systems, data collection methods, risk assessment, industry analysis, production management, development economics, financial management, research methods, performance management, economics, accounting and finance |
| Topics: | Research Practice, Project Management, Business Strategy, Cost Management, Sustainability, Risk Management, International Construction, Quality Management, Site Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here